9911796707
TMI Blog1990 (5) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn of income on 28-6-1982. The assessment was made on 29-3-1985, determining the total income at Rs. 2,35,95,320 and the tax thereon at Rs. 1,34,90,017. Since the assessee had paid advance tax of Rs. 1,54,17,829, the assessment resulted in a refund of Rs. 19,27,812 of the advance tax as well as the refund of self-assessment tax of Rs. 1,49,968 totalling Rs. 20,77,780. The Income-tax Officer granted interest under section 214 thereon at Rs. 6,98,827. The assessee appealed and by order dated 29-8-1986, the Commissioner of Income-tax (Appeals) granted some relief. The Income-tax Officer gave effect to the appellate order by his order of recomputation of the income dated 8-10-1986. The income was reduced to Rs. 2,06,13,405 and the tax to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee had pointed this out to the Commissioner, but this point was overlooked and, therefore, the order revising the granting of interest without establishing that the order of the Income-tax Officer was really prejudicial to the revenue was without jurisdiction and must be set aside. 5. On the other hand, it was contended on behalf of the revenue that the order of the Income-tax Officer being admittedly erroneous in law inasmuch as it was not in conformity with the above decision of the High Court, the Commissioner was right in setting aside that order and it was for the assessee to seek any other relief that may be available in other appropriate proceedings. 6. On a consideration of the rival submissions, we are of the opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paid by the Central Government after one month itself from the date of the appellate or other order, it is of paramount importance to ensure that appellate, revisionary or other orders are received in time and given effect to with extraordinary promptness ensuring that in any case they are given effect to within a month of the date of the order." 8. In view of these standing instructions, it is quite possible that the Income-tax Officer had only carried out the mandate of section 244(1A) even though he had not stated so in the order, which had only referred to section 214 while granting the interest. The assessee had specifically pointed out in the reply dated 16-3-1989 to the show-cause notice to the Commissioner that if the interest ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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